Cameroon has hiked the fixed price it pays to cocoa farmers to 1,500 CFA francs ($ 2.5) per kilogram, a 25% rise from the 1,200 CFA francs set for last season.
The new price is the highest since 2015 following a global shortfall, Trade Minister Luc Magloire Mbarga Atangana said in an announcement on Thursday.
About two-thirds of the world's total cocoa crop comes from West and Central Africa, much of it from the Ivory Coast, with Ghana, Nigeria and Togo among the major producers alongside Cameroon.
Cameroon’s new price tag is supported by concerns that the market is heading into a third straight deficit in the 2023 - 2024 season, with weather in the cocoa-producing regions in West Africa still worrisome.
Unfavourable weather
The Ivory Coast has struggled with a severe shortfall of cocoa beans to cover its contracts with foreign partners.
At the start of September, South African producer De Villiers Chocolate said it was closing down due to difficulties that include load shedding and the price of cocoa.
A 100kg bag of dry beans yields about 40kg of cocoa butter and 40kg of cocoa powder, through a long process that includes fermentation and roasting.
Milk chocolate typically has a minimum of 25% cocoa mass, while dark chocolate has a far higher proportion of cocoa.
While weather has been unfavourable, demand for chocolate has soared in recent years. But cocoa trees can take up to 10 years to mature, ultimately curbing supply.
